Combined smartcard and magnetic-stripe card and reader and associated method

ABSTRACT

A multi-functional portable data device (preferably a combined smart card and magnetic-stripe card) is used for exchanging money with a financial institution in a cashless (i.e., credit or debit) transaction, and to credit or debit an electronic purse (“e-purse”) resident on the portable data device. An integrated data reading device can be used to conduct the various monetary transactions electronically so as to transfer money between the financial institutions and the e-purse on the portable data device. The portable data device preferably can be presented to gaming devices in a cashless gaming environment to allow the customers to use the gaming devices.

CROSS REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. application Ser. No.09/832,243, filed on Apr. 9, 2001, now U.S. Pat. No. 6,601,771. Theforegoing application is hereby incorporated by reference as if setforth fully herein.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The field of the present invention relates to gaming devices and systemsand, more particularly, to methods and systems for utilizing acombination smartcard and magnetic-stripe card and reader in a gamingsystem.

2. Background

Casinos and gaming establishments have traditionally relied uponcoin-operated gaming devices. Such coin-operated gaming devices have anumber of drawbacks or limitations. For example, they generally requirecustomers to carry around large numbers of coins, which can beinconvenient or burdensome to customers.

To increase the convenience to customers, casinos and gamingestablishments have for a number of years sought to provide a cashlessgaming system. Some proposed systems, for example, allow customers touse gaming establishment credit cards to transfer playing credits to,and retrieve credits from, a particular gaming machine. An example of asuch a system is described in U.S. Pat. No. 6,019,283. Many places inthe United States and the rest of the world presently do not allowgambling on credit, however, making credit card systems of limited use.A similar proposed system allows use of a player-carried device such asa magnetic-stripe card to allow customers to use coin-operated gamedevices by paying a lump sum in lieu of using individual coins. Such asystem is described, for example, in U.S. Pat. No. 4,575,622.

Yet another proposed approach is described in U.S. Pat. No. 5,179,517,which discloses a system in which a credit account for a particularcustomer is maintained on a portable data carrier commonly known as a“smart card.” A smart card is a device generally in the size and shapeof a standard credit card, encapsulating solid-state memory, circuitryfor allowing the memory to be read from or written to, and, in certaincards, microprocessor circuitry for performing various programmablefunctions. Smart cards may be equipped with an interface havingelectrical contacts which make a physical connection with a smart cardreader, or else may be equipped with a radio frequency (RF) interface toallow a smart card reader to interact with the smart card electroniccircuitry over an RF communication link. A standard (ISO) protocol hasbeen developed within the smart card industry for communicating betweensmart cards and smart card readers.

Other examples of data cards used for conducting cashless exchanges witha gaming machine or system are described in U.S. Pat. No. 6,089,982,which involves use of a player ID card for establishing gaming sessionsat player terminals, and U.S. Pat. No. 5,371,345, which describes achange card having a memory storing a cash value which a change personcan use to input a credit into a gaming machines in exchange for cashfrom a player.

Cashless gaming systems are most often utilized in an environment inwhich the various gaming devices are all connected to and controlled bya central computer, which serves as the host for a local area network,and such systems are referred to as “on-line” systems. Such on-linegaming systems have certain advantages such as centralized control andplayer tracking capability. On the other hand, “off-line” gaming devicesare generally stand-alone, and are not directly tied to a host computeror a network. However, they generally have the advantage of beingdeployable in any locale without requiring the expense and overhead of acentral computer system.

The foregoing approaches to cashless or card-based gaming, whileproviding some measure of convenience, nevertheless have drawbacks orlimitations which make them less than ideal. For example, many of thecashless or card-based systems are inconvenient when the player movesfrom gaming machine to gaming machine, particularly if the gamingmachines are not tied to the same central computer system. Some of thecashless or card-based systems require the involvement of gamingestablishment personnel to, e.g., add credit amounts to the playingcard. This requirement limits the locations in which gaming machines canbe utilized, and also can be inconvenient to players.

There is a need for a gaming system which provides increased convenienceto players and gaming establishments, and which overcomes or mitigatesvarious drawbacks and limitations in conventional cashless or card-basedgaming systems.

SUMMARY OF THE INVENTION

The invention provides in one aspect systems, methods and techniques forsecure cashless gaming which can be used with off-line or on-line gamingdevices. In one or more embodiments, a single device in the form of amulti-functional portable data device (preferably a combined smart cardand magnetic-stripe card) can be used to exchange money with a financialinstitution in a cashless (i.e., credit or debit) transaction, and tocredit or debit an electronic purse (“e-purse”) resident on the portabledata device. An integrated data reading device can be used to conductthe various monetary transactions electronically so as to transfer moneybetween the financial institutions and the e-purse on the portable datadevice. The portable data device preferably can be presented to gamingdevices in a cashless gaming environment to allow the customers to usethe gaming devices.

Further embodiments, variations and enhancements of the invention arealso described herein.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a conceptual block diagram of a system which supports use of aportable data device such a combined smart card and magnetic-stripecard.

FIGS. 2A and 2B are diagrams showing the back and front, respectively,of one example of a combined smart card and magnetic-stripe card as maybe used, for example, in the system of FIG. 1.

FIG. 3 is a diagram of an integrated data reading device as may be used,for example, in the system shown in FIG. 1.

FIGS. 4, 5 and 6 are method flow diagrams illustrating electronictransactions that may be carried out, for example, by one embodiment ofthe integrated data reading device of FIG. 3. FIG. 4 shows initialverification and other steps in the exemplary process flow. FIG. 5 showssteps for crediting an e-purse on the portable data device, while FIG. 6shows steps for debiting an e-purse on the portable data device.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS

FIG. 1 is a conceptual block diagram of a preferred system 100 whichsupports use of a portable data device such a combined smart card andmagnetic-stripe card. As shown in FIG. 1, the system 100 includes ane-purse transaction domain 101, a credit/debit transaction domain 151,and a combined transaction domain 180. A multi-functional portable datadevice 191 can be used in any of the three domains—that is, in thee-purse transaction domain 101, the credit/debit transaction domain 151,or the combined transaction domain 180. When used in the e-pursetransaction domain 101, the multi-functional portable data device 191permits electronic transactions utilizing an e-purse stored on themulti-functional data device 191. The e-purse may be accessed via asmart card interface 192 integral with the multi-functional data device191. When used in the credit/debit transaction domain 151, themulti-functional portable data device 191 permits electronic creditand/or debit transactions utilizing, e.g., a magnetic stripe 193 orother such media affixed to or integrated with the multi-functional datadevice 191. When used in the combined transaction domain 180, themulti-functional portable data device 191 permits both electronictransactions in the e-purse transaction domain 101 and electronic creditand/or debit transactions in the credit/debit transaction domain 151.Preferred transactions carried out in the combined transaction domain180 are described in more detail hereinafter.

The credit/debit transaction domain 151 may comprise a conventionalbanking card domain including, e.g., merchant store card readers,automatic teller machines (ATMs), bank office computer systems, etc.,all of which are depicted conceptually as point-of-sale devices 155 inFIG. 1. The multi-functional portable data device 191, like other creditor debit cards 160, may be used to conduct electronic credit and/ordebit transactions in the credit/debit transaction domain 151. Forexample, if the multi-functional portable data device 191 includes amagnetic stripe 193 affixed thereto, the magnetic stripe 193 may bemanually swept through a magnetic stripe reader at a point-of-saledevice 155 in order to read the information thereon and conduct aconventional credit or debit transaction, depending upon whether themagnetic stripe 193 serves a credit function (as a credit card) or adebit function (as a debit card). Optionally, the magnetic stripe 193may serve both a credit and debit function. To conduct a credit or debittransaction, the point-of-sale device 155 communicates a front endinterface 171 of the computer system of a financial institution (e.g., abank) 170. The front end interface 171 does initial processing of thecredit or debit transaction according to conventional protocols andtechniques for handling credit or debit card transactions, and thengenerally queues the electronic record of the credit or debittransaction at the back end 173 of the financial institution computersystem, again according to conventional protocols and techniques.

The point-of-sale devices 155 may connect to the financial institutioncomputer system via a communication link such as conventional telephoneline, a private wired line, a local or wide area network, or a globalcommunications network such as the Internet.

The e-purse transaction domain 101 preferably comprises a closedcommercial environment, such as an environment provided by a gamingestablishment or collective of gaming establishments. Themulti-functional portable data device 191 may, like other portablee-purse devices 110, be used to conduct electronic transactions in thee-purse transaction domain 101. For example, if the multi-functionalportable data device 191 includes a smart card interface 192 integraltherewith, the multi-functional portable data device 191 may bepresented to a smart card reader at a point-of-sale device 106 or at anelectronic gaming machine 105, in order to add or subtract cash amountsfrom the e-purse of the multi-functional portable data device 191 by wayof an electronic transaction. To conduct an electronic e-pursetransaction, the point-of-sale device 106 or electronic gaming machine105 communicates a front end interface 121 of the computer system of agaming establishment (e.g., a casino) 120. The front end interface 121does initial processing of the electronic transaction according toconventional protocols and techniques for handling electronic e-pursetransactions, and then generally transfers an electronic recordcorresponding to the electronic transaction to the back end 123 of thegaming establishment computer system for further processing, againaccording to conventional protocols and techniques. Although the e-pursetransaction domain 101 is preferably a closed environment, the gamingestablishment computer system may be connected to the financialinstitution computer system via, e.g., their respective front endinterfaces 121, 171.

The point-of-sale devices 106 and electronic gaming machines 105 mayconnect to the gaming establishment computer system through a local areanetwork, but may in some embodiments connect to the gaming establishmentcomputer system via a communication link such as conventional telephoneline, a private wired line, or a global communications network such asthe Internet.

As further illustrated conceptually in FIG. 1, an integrated datareading device 190 can be used to conduct various electronictransactions so as to allow transfer of monetary amounts between thecredit/debit transaction domain 151 and the e-purse transaction domain101, by performing credit/debit transactions with financial institutions170 within the credit/debit transaction domain 151 and electronic cashtransfers to and from the e-purse of the multi-functional data device191 within the e-purse transaction domain 101. The integrated datareading device 190 preferably has means for receiving themulti-functional data device 191, and allows owners of themulti-functional data device 191 to transfer monetary amounts from afinancial institution account to the e-purse stored on themulti-functional data device 191 by a credit or debit transaction, andto transfer monetary amounts from the e-purse to a financial institutionaccount via a reverse credit or debit transaction.

FIG. 3 is a diagram of one embodiment of an integrated data readingdevice 301, for use within a combined transaction domain 300, as may beincorporated, for example, in the system shown in FIG. 1. The integrateddata reading device 301 may be embodied as an automated teller machine,a kiosk, a combination banking point-of-sale and gaming point-of-saledevice, or various other devices. Depending upon its specificarchitecture and design, the integrated data reading device 301 can beattended or unattended. In the present example illustrated in FIG. 3,the multi-functional data device 191 is embodied as a card 390 having asmart card interface 392 and a magnetic stripe 393. As shown in FIG. 3,the integrated data reading device 301 comprises a reading unit 310which, in this example, comprises a smart card acceptor 311 and amagnetic stripe head 312, enabling the integrated data reading device301 to read both from the smart card interface 392 and the magneticstripe 393 of the card 390. Details of the preferred operation of theintegrated data reading device 301 are explained further below.

FIGS. 2A and 2B are diagrams collectively illustrating an example of amulti-functional data device embodied as a combined smart card andmagnetic-stripe card 200, as may be used, for example, in the system ofFIG. 1 or with the integrated data reading device 301 shown in FIG. 3.FIG. 2A illustrates the back of the combined smart card andmagnetic-stripe card 200, while FIG. 2B illustrates the front of thecombined smart card and magnetic stripe card 200. As shown in FIGS. 2Aand 2B, the combined smart card and magnetic-stripe card 200 may includea readable static media portion such as a magnetic stripe 205 (FIG. 2A)storing the card holder's financial institution account information, aswell as an embedded integrated circuit (IC) chip 220 (FIG. 2B) storingthe card holder's e-purse information. As further illustrated in FIG.2A, the combined smart card and magnetic-stripe card 200 may include abanking signature panel 208 and a gaming establishment account number210. The combined smart card and magnetic-stripe card 200 may alsoinclude, as illustrated in FIG. 2B, a gaming establishment logo orindicia 223, a financial institution account number 226 (correspondingto the information stored on the magnetic stripe 205), and a financialinstitution logo or indicia 229.

The combined smart card and magnetic-stripe card 200 may be constructedof a durable material such as plastic, similar to an ordinary creditcard or smart card. The smart card portion of the combined smart cardand magnetic-stripe card 200, which includes the IC chip 220, preferablycomprises solid-state memory, circuitry for allowing the memory to beread from or written to, and in a preferred embodiment as describedherein, microprocessor circuitry for performing various programmablefunctions. The smart card portion of the combined smart card andmagnetic-stripe card 200 may be equipped with an interface havingelectrical contacts which make a physical connection with a smart cardreader, or else, alternatively, may be equipped with a radio frequency(RF) interface to allow a smart card reader to interact with the smartcard electronic circuitry over an RF communication link. Techniques formanufacturing smart cards and associated electronics, and forcommunicating between a smart card and a smart card reader via eitherphysical contacts or an RF communication link, are well known andconventional.

In a preferred embodiment, the integrated data reading device 301 isused to conduct various electronic monetary transactions so as totransfer money between one or more financial institutions and thee-purse on the combined smart card and magnetic-stripe card 200. Theintegrated data reading device 301 comprises an interface 320 forcommunicating with a front-end transaction processor 380 of a financialinstitution computer system 384. The integrated data reading device 301also comprises another interface 340 for communicating with a gamingestablishment front end 370 of a gaming establishment computer system374. To conduct electronic exchanges, the reading unit 310 of theintegrated data reading device 301 reads information from the staticdata portion (e.g. magnetic stripe) of an inserted card 390 and/orexchanges information with the smart card IC chip 392, using themagnetic stripe head 312 or the smart card acceptor 311, respectively. Adisplay 330 (such as a liquid crystal display (LCD) or other screendisplay) may be provided for conveying information to the operator ofthe integrated data reading device 301. A keyboard or keypad 335 mayalso be provided, allowing the operator to enter in numerical values formonetary transactions (as with an automated teller machine) or to entera personal identification number (PIN). The integrated data readingdevice 301 may also include a printer 325 for printing out a receipt 326containing the details of an electronic transaction.

FIGS. 4, 5 and 6 are method flow diagrams illustrating electronictransactions that may be carried out by an integrated data readingdevice such as the one illustrated in FIG. 3. While the details of themethod flow diagrams illustrated in FIGS. 4, 5 and 6 are described withrespect to a preferred embodiment of an integrated data reading device301 shown in FIG. 3, it should be understood that the methodologiesillustrated in FIGS. 4, 5 and 6 and the principles and conceptsassociated therewith may be employed with alternative data readingdevices as well.

FIG. 4 shows steps for starting an electronic transaction so as toeither increase or decrease the amount of the e-purse on the combinedcard 390. In a first step 401 of the process flow 400, the card ispresented to (e.g., inserted into) the reading unit 310 of theintegrated data reading device 301, and the physical characteristics ofthe combined card 390 are verified. Specifically, the magnetic stripehead 312 reads the data on the magnetic stripe 393 of the inserted card390, while the smart card acceptor 311 communicates with the smart cardIC chip 392 of the card 390. If the magnetic stripe head 312 and thesmart card IC chip 392 successfully read the expected information, theprocess flow 400 moves to a next step 405. If, on the other hand, theexpected information is not read, then the card is ejected or otherwiserejected, as indicated by step 430. Assuming a proper magnetic stripe393 and smart card IC chip 392 are detected by the reading unit 310, oneor more verification steps are then carried out. In a preferredembodiment, the integrated data reading device 301 performs localauthentication of the smart card IC chip 392 to confirm it was issued byor is otherwise associated with the gaming establishment 120, asindicated by step 405. For example, the integrated data reading device301 may read a gaming establishment account number from the smart cardIC chip 392, and compare it against a table, database or file containingvalid account numbers. Such a table, database or file may be storedlocally at the integrated data reading device 301 (and periodicallyupdated), or, alternatively, for security purposes, the account numbersmay be stored at the gaming establishment computer system 374. In such acase, the integrated data reading device 301 may forward the gamingestablishment account number read from the smart card IC chip 392 to thegaming establishment computer system 374, which then authenticates theaccount number and returns a message indicating whether or not theaccount number is valid.

After verification of the gaming establishment account number, theintegrated data reading device 301, as indicated by step 408, verifiesthe information read off the static data portion of the card 390 (i.e.,the magnetic stripe 393) and may, for example, calculate a checksum andcompare it against a predetermined checksum value to confirm theaccuracy of the information read from the magnetic stripe 393 as well asto verify the authenticity of the financial institution accountinformation. In addition, the integrated data reading device 301preferably confirms the format of the information read from the magneticstripe 393 against a predetermined format (specified by the financialinstitution). The checksum, financial institution account informationand account number format may be stored locally at the integrated datadevice reader 301. Alternatively, this data may be stored at thefinancial institution computer system 384, and may be either retrievedupon request by the integrated data reading device 301, or else the datamay be forwarded to the financial institution computer system 384 whichitself conducts the checksum and verification procedure, returning amessage indicating whether or not the procedure was successfully passed.

Assuming the checksum and format verification steps are passedsuccessfully, the integrated data reading device 301 then, as indicatedby step 412, the integrated data reading device 301 reads the balancefrom the e-purse stored on the smart card IC chip 392 of the combinedcard 390. Preferably the balance read from the e-purse is certified—thatis, the smart card IC chip 392 appends a special integrity code orcertificate to the balance, based upon a key and the balance amountdata. The key is preferably a unique key associated with the particularcombined card 390. The certificate is generated internally by thee-purse reading process of the smart card IC chip 392, as a function ofthe unique key and the particular balance of the e-purse when it is readout.

Assuming the balance read from the e-purse is certified, the integrateddata reading device 301 then performs a certification to verify thebalance amount read from the e-purse and the associated certificate. Tothis end, the integrated data reading device 301 recalculates (orotherwise obtains) the card key, generates its own special integritycode or certificate by using the same algorithm as the smart card ICchip 392 with the recalculated card key and the received balance amount,and compares the result with the certificate issued by the combined card390. If the comparison is positive the process continues.

If any of the foregoing steps 405, 408 or 412 results in a verificationfailure, the integrated data reading device 301 ejects the combined card390, as indicated by step 430 in the process flow 400, and the processaborts.

Assuming the verification steps 405, 408 and 412 are successfullypassed, the process flow moves to step 415, whereupon the balance valueof the e-purse stored on the smart card IC chip 392 and the expirationdate, if any, of the combined card 390 are displayed for the operator onthe screen display 330 of the integrated data reading device 301. Atthis point, the operator may select a transaction to perform relating tothe e-purse. The operator preferably selects the transaction using thebuttons of the keypad 335 or using any other provided data input means(such as, e.g., a touchscreen, individual buttons with dedicatedfunctions, a microphone and internal voice recognition electronicsand/or software, etc.). In step 420, the integrated data reading device301 determines the type of requested transaction. Examples oftransaction types may include, e.g., a balance request, an increase tothe e-purse amount, a decrease to the e-purse amount, or any other typeof transaction that can be conducted with an e-purse or magnetic stripecard.

If the requested transaction is a balance request, then the balanceamount may be printed out on a transaction receipt 326 using printer325, and the card 390 may then be automatically ejected or, optionally,further transactions may be permitted in the same session. If, on theother hand, a request is made to increase the amount of the e-purse,then steps are carried out to increase the e-purse through an electronicmonetary transaction. Preferred steps for doing so are illustrated inthe process flow 500 shown in FIG. 5. In step 505 of the process flow500, the integrated data reading device 301 determines the maximum valueallowed to be added to the e-purse, and also verifies the card holder'sgaming account information. The combined card 390 is checked against abad card list, and the validity period (i.e., expiration date) of thecard 390 and the applicable currency are also obtained from the card 390and, if desired, may be cross-checked by casino records along with,optionally, the maximum value allowed to be added to the e-purse. In oneparticular embodiment, the integrated data reading device 301 acceptsthe maximum value so long as it is under a pre-set level, but, if itexceeds the pre-set level, cross-checks the maximum value with thecasino records of the gaming establishment computer system 374. Sincethe e-purse transaction domain 101 is preferably a closed environment,the maximum e-purse value and the account information for each cardholding member of the gaming establishment may be conveniently storedlocally at the integrated data reading device 301 (and updatedperiodically from the gaming establishment computer system 374).Alternatively, the integrated data reading device 301 may transmit thecard holder's account number to the gaming establishment computer system374, where the maximum e-purse values can be centrally stored, and inreturn receive the e-purse maximum value corresponding to the cardholder's account number. If the account number is not found in theelectronic records of the gaming establishment computer system 374, anerror message is returned to the integrated data reading device 301,which then aborts the transaction and displays an appropriate message onthe screen display 330 to the operator.

In a next step 508, the integrated data reading device 301 prompts thecard holder to enter the monetary amount to be added to the e-purse. Theintegrated data reading device 301 may, for example, display a messageon the display screen 330 requesting the operator to enter the monetaryamount to be added to the e-purse. The operator may enter thisinformation using the keypad 335 or any other data input means providedat the integrated data reading device 301. Next, in step 512, if thecard 390 is a debit card, or if otherwise required by the nature of thecard 390, the card holder is prompted to enter the card holder'spersonal identification number (PIN) code, which may likewise be enteredusing the keypad 335 or any other data input means provided at theintegrated data reading device 301. In a next step 515, the integrateddata reading device 301 connects to the financial institution computersystem 384 and submits the transaction request and the card holder'sentered PIN code (if applicable) to the front-end transaction processor380 thereof. This information may be communicated according to anystandard protocol used by the credit/debit transaction domain 151 or,alternatively, any acceptable custom protocol. The financial institutioncomputer system 384 receives the account number, PIN code (ifapplicable) and transaction amount, along with, optionally, atransaction identifier. The financial institution computer system 384verifies that the account number and, if applicable, the PIN code. Ifthe account number or PIN code is incorrect, the financial institutioncomputer system 384 denies the transaction and returns a message to theintegrated data device reader 301 that the transaction is to be aborted.If, on the other hand, the account number and PIN code are properlyverified, the financial institution computer system 384 verifies thatthe amount being requested by the transaction does not exceed the creditamount of the card holder, if the card 390 is being used as a creditcard, or else does not exceed the amount of cash in the card holder'sbank account, if the card 390 is being used as a debit card. If therequested amount exceeds the card holder's credit limit (if a credittransaction) or available cash (if a debit transaction), the financialinstitution computer system 384 denies the transaction and returns amessage to the integrated data device reader 301 that the transaction isto be aborted. If, on the other hand, the requested amount is within thecard holder's account limits, then a transaction approval message isreturned to the integrated data device reader 301. In such a case, instep 520, the integrated data device reader 301 connects to the gamingestablishment computer system 374 and submits the transaction forprocessing. The gaming establishment computer system 374 then updatesits records, unless the transaction information (e.g., card accountnumber) is invalid, in which case the transaction is denied and theprocess is aborted.

Upon successful completion of a credit or debit transaction with thefinancial institution computer system 384, the integrated data readingdevice 301 then updates the e-purse on the smart card IC chip 392 of thecard 390. The integrated data reading device 301 also sends a message tothe gaming establishment computer system 374 with the transactiondetails, so that the gaming establishment computer system 374 can updatethe card holder's account information at the gaming establishment.Preferably, this update is carried out relatively quickly (e.g., withina few seconds). Should the card 390 be ejected or forcibly removed forany reason before the e-purse amount can be updated, the integrated datareading device 301 may send a message to the financial institutioncomputer system 394 canceling or otherwise backing out the transaction.Once the e-purse account is updated on the card 390 and the gamingestablishment account information is updated, the card 390 is ejectedfrom the reading unit 310 and the integrated data device reader 301 isavailable for further transactions, as indicated by step 530.

If, instead of crediting the amount of the e-purse (as shown in FIG. 5),the operator decides to transfer a monetary amount from the e-purse to adifferent account, then steps are carried out by the integrated datareading device 301 to debit the e-purse. Preferred steps for doing soare illustrated in the process flow 600 shown in FIG. 6. In step 605 ofthe process flow 600, the integrated data reading device 301 checks theremaining value on the e-purse (and thus the maximum amount available totransfer), and also verifies the card holder's gaming accountinformation. The remaining value on the e-purse is read directly fromthe smart card IC chip 392 on the card 390, and may be cross-checkedagainst the remaining e-purse value for the card as stored in therecords of the gaming establishment computer system 374 (or, optionally,may be cross-checked only if the remaining value exceeds a certainpre-set level). The combined card 390 is checked against a bad cardlist, and the validity period (i.e., expiration date) of the card 390and the applicable currency are also obtained from the card 390, andoptionally cross-checked against the electronic gaming establishmentrecords. As previously noted, since the e-purse transaction domain 101is preferably a closed environment, the account information for eachcard holding member of the gaming establishment may be convenientlystored locally at the integrated data reading device 301, andperiodically updated. Alternatively, the integrated data reading device301 may transmit the card holder's account number to the gamingestablishment computer system 374 for verification. If the accountnumber is not found in the electronic records of the gamingestablishment computer system 374, an error message is returned to theintegrated data reading device 301, which then aborts the transactionand displays an appropriate message on the screen display 330 to theoperator.

In a next step 608, the integrated data reading device 301 prompts thecard holder to enter the monetary amount to be transferred from thee-purse. The integrated data reading device 301 may, for example,display a message on the display screen 330 requesting the operator toenter the monetary amount to be transferred from the e-purse. Theoperator may enter this information using the keypad 335 or any otherdata input means provided at the integrated data reading device 301.Next, in step 612, if the card 390 is a debit card, or if otherwiserequired by the nature of the card 390, the card holder is prompted toenter the card holder's personal identification number (PIN) code, whichmay likewise be entered using the keypad 335 or any other data inputmeans provided at the integrated data reading device 301. In a next step615, the integrated data device reader 301 submits the transaction tothe gaming establishment computer system 374, which then authorizes thetransaction or else may deny the transaction for any of a variety ofreasons (e.g., account number cannot be found).

Upon receiving approval from the gaming establishment computer system374, the integrated data reading device 301, in a next step 620,connects to the financial institution computer system 384 and submitsthe transaction request and the card holder's entered PIN code (ifapplicable) to the front-end transaction processor 380 of the financialinstitution computer system 384. Similar to the process described withrespect to FIG. 5, this information may be communicated according to anystandard protocol used by the credit/debit transaction domain 151 or,alternatively, any acceptable custom protocol. The financial institutioncomputer system 384 receives the account number, PIN code (ifapplicable) and transaction amount, along with, optionally, atransaction identifier. The financial institution computer system 384verifies that the account number and, if applicable, the PIN code. Ifthe account number or PIN code is incorrect, the financial institutioncomputer system 384 denies the transaction and returns a message to theintegrated data device reader 301 that the transaction is to be aborted.If, on the other hand, the account number and PIN code are properlyverified, then a transaction approval message is returned to theintegrated data device reader 301. The financial institution computersystem 394 then processes a reverse credit or debit transaction, toeither add credit to the card holder's credit account, or add cash tothe card holder's debit account, according to the transaction amount(i.e., the requested transfer amount from the e-purse on the card 390).

In a next step 625, after receiving the transaction approval messagefrom the financial institution computer system 394, the integrated datareading device 301 updates the e-purse stored in the smart card IC chip392 of the card 390, by subtracting the amount from the e-purse. Theintegrated data reading device 301 also sends a message to the gamingestablishment computer system 374 with the transaction details, so thatthe gaming establishment computer system 374 can update the cardholder's account information at the gaming establishment. Preferably,this update is carried out relatively quickly (e.g., within a fewseconds). Should the card 390 be ejected or forcibly removed for anyreason before the e-purse amount can be updated, the integrated datareading device 301 may send a message to the financial institutioncomputer system 394 canceling or otherwise backing out the transaction.Once the e-purse account is updated on the card 390 and the gamingestablishment account information is updated, the card 390 is ejectedfrom the reading unit 310 and the integrated data device reader 301 isavailable for further transactions, as indicated by step 630.

It should be noted that, while the steps illustrated in FIGS. 4, 5 and 6appear in a certain order in those particular diagrams and have beendescribed according to such an order, those skilled in the art willappreciate that the ordering of the steps can be altered while stillproviding beneficial functionality to the card holder, financialinstitution and/or gaming establishment. Therefore, the particulararrangement of steps, or the inclusion of any particular step, is notintended to limit the scope of the invention in any manner.

A combined smart card and magnetic stripe card, and an integrated datadevice reader, as described herein may be used in connection with agaming system wherein electronic gaming machines are outfitted withintelligent smart card readers which can manage cash or cashlesstransactions at the electronic gaming machine. An example of such anintelligent smart card reader is described in copending U.S. applicationSer. No. 09/456,021 filed Dec. 3, 1999, assigned to the assignee of thepresent invention, and hereby incorporated by reference as if set forthfully herein.

According to one exemplary embodiment described in the above-referencedpatent application, a secure cashless gaming system comprises aplurality of gaming devices which may or may not be connected to acentral host network. Each gaming device preferably includes anintelligent data device reader (for example, a smart card reader) whichis uniquely associated with a security module interposed between theintelligent data device reader and the gaming device processor. Aportable data device (such as a smart card, or a combined smart card andmagnetic-stripe card) bearing credits is used to allow players to playthe various gaming devices. When a portable data device is presented tothe gaming device, it is authenticated before a gaming session isallowed to begin. The intelligent data device reader in each gamingdevice monitors gaming transactions and preferably stores the resultsfor later readout in a secure format by a portable data extraction unit,or else for transfer to a central host network. Gaming transaction datamay be aggregated by the portable data extraction unit from a number ofdifferent gaming devices, and may be transferred to a central accountingand processing system for tracking the number of remaining gamingcredits for each portable data unit and/or player. Individual playerhabits can be monitored and tracked using the aggregated data. In such asystem, a combined smart card and magnetic-stripe card (such as shownand described with respect to FIG. 2 or 3 herein, for example) may beutilized both at an integrated data device reader (as described withrespect to FIG. 3 herein, for example) and at an electronic gamingmachine having a smart card reader. The smart card reader at theelectronic gaming machine may extract one or more credit amounts fromthe e-purse on the combined smart card and magnetic-stripe card to allowthe card holder to play at an electronic gaming machine. In someembodiments, cards only have smart card functionality (without themagnetic-stripe portion) can also be used in the electronic gamingmachines (preferably with the same intelligent data device reader), butwill not be usable in the integrated data device reader such asdescribed with respect to FIG. 3 herein (since it lacks themagnetic-stripe functionality and, therefore, the ability to conductcredit or debit transactions with a financial institution).

In another embodiment described in the aforementioned patentapplication, a gaming device includes an intelligent data device readerwhich is uniquely associated with a security module interposed betweenthe intelligent data device reader and the gaming device processor. Eachtime an attempt is made to initiate a gaming session (by, e.g.,presenting a portable data device such as a smart card, or a combinedsmart card and magnetic-stripe card), and periodically thereafter, ifdesired, an authentication process is performed to ensure that thecorrect intelligent data device reader and the correct security moduleare present. If one or the other is missing, then the player will beunable to utilize the gaming device, and the portable data device willnot be updated. Preferably, an e-purse on the portable data device isused to store the credits which are used at the electronic gamingmachine.

In certain embodiments, the intelligent data device reader at anelectronic gaming machine may be programmed to automatically transfergaming credits from a portable data device (for example, a smart card,or a combined smart card and magnetic-stripe card) inserted in theintelligent data device reader to the gaming device. Each time thenumber of credits falls below a predetermined minimum level, theintelligent data device reader may be programmed to transfer a givennumber of additional gaming credits to the gaming device, thusalleviating the need for the player to manually enter an amount ofgaming credits to transfer to the gaming device.

Other techniques, features and functions described with respect to smartcards in the previously referenced copending patent application aregenerally applicable as well to a combined smart card andmagnetic-stripe card (or other portable data device) as describedherein. However, such techniques, features and functions are merelyillustrative of the widespread variations which can be utilized inconnection with the combined smart card and magnetic-stripe card (andother portable data devices) described herein. As but one example, inaddition to storing gaming credit in an e-purse, each portable datadevice also preferably includes a player identification code, whichallows the card to be correlated to a particular individual or entity.The player identification code can be used for accounting purposes wheninformation about particular gaming sessions is extracted from theelectronic gaming devices. The portable data device may also compriseone or more files or static or non-volatile memory portions which storeidentification and other information concerning the player and issuinggaming establishment, secret keys for performing authentication checks,a log of transactions including data from the last N gamingtransactions, and a session log containing data from the N last gamingsessions.

Once gaming credit has been placed in the e-purse of a multifunctionalportable data device 191 as described herein, the holder may take themulti-functional portable data device 191 to any of the electronicgaming devices 105 and utilize the gaming device in a cashless manner.When a player inserts the multi-functional portable data device 191 intothe intelligent data device reader of the electronic gaming machine 105,the electronic gaming machine 105 validates the multi-functionalportable data device 191 (preferably using a security module), using,e.g., a cross-authentication check prior to gaming being permitted.

In various alternative embodiments, rather than a smart card with ane-purse, the multi-functional portable data device 191 may compriseanother type of data storage and retrieval unit. An embodiment in whichthe multifunctional portable data device 191 comprises a smart cardportion is preferred, however, because of the ability, with on-boardmicroprocessor circuitry, to imbue the smart card with intelligence,thereby facilitating security and processing features. An alternativedata storage and retrieval unit used instead of the smart card portionon the multifunctional portable data device preferably has built-inintelligence in the form of programmable microprocessor circuitry or theequivalent, to carry out the security and other processing featuresdescribed herein.

In certain embodiments, when the multi-functional portable data device191 includes credit card functionality and is used in regions wheregovernmental regulations disallow the use of a credit card to put crediton a gaming machine, the credit card functionality of themulti-functional portable data device 191 is only used for the purposeof adding to or subtracting from the e-purse (and correspondinglydebiting or crediting a financial institution account), but is not usedfor directly placing credit on a gaming machine itself.

In certain embodiments, when the multi-functional portable data device191 includes debit card functionality, the multi-functional portabledata device 191 may be so configured that it is unable to access afinancial institution account for the purpose of directly transferring acash amount to the electronic gaming machine, in order to avoid anundesirable level of interaction between the financial institution andthe gaming system. In other embodiments, however, such interaction maybe permissible.

In some embodiments, when governmental regulations so permit, thefinancial institution account information can be stored within the smartcard IC chip 192 (or 392) of the multi-functional portable data device191 (or 390), therefore obviating the need for a magnetic stripe 193. Insuch embodiments, the integrated data device reader 190 (or 301) neednot have a magnetic stripe reading head or equivalent mechanism forreading static data from the multi-functional portable data device 191(or 390).

In one aspect, a system is provided for conducting electronic monetarytransfers to and from an electronic purse stored on a portable datadevice that includes a smart card portion comprising the electronicpurse and a magnetic stripe portion. The system, in one embodiment, maycomprise at least one electronic gaming machine adapted to receive theportable data device and communicate with the smart card portionthereof, the electronic gaming machine transferring money to and fromthe electronic purse of the smart card portion of the portable datadevice via electronic commands; and a data device reader adapted toreceive the portable data device, the data device reader comprising asmart card interface for communicating with the smart card portion ofthe portable data device, a magnetic stripe reading head for reading themagnetic stripe portion of the portable data device, a communicationlink to a financial institution transaction processor, a communicationlink to a gaming establishment computer system, and a processorconfigured to performing a monetary transfer between a customer accountmanaged by the financial institution transaction processor and theelectronic purse of the portable data device. The electronic purse ofthe portable data device may store a credit amount allowing the portabledata device to be utilized in the electronic gaming machine, and aportion of said credit amount may be automatically read out by theelectronic gaming machine upon presentation of said portable data deviceto the electronic gaming machine.

In another aspect, an electronic gaming machine adapted to receive aportable data device such as heretofore described may comprise a datadevice reader, a gaming device processor, and a security moduleinterposed between said data device reader and said gaming deviceprocessor, the security module comprising a data device reader interfacefor connection to the data device reader, a gaming device interface forconnection to the gaming device processor, and a security moduleprocessor interposed between the data device reader interface and thegaming device interface, the security module processor configured toprevent communication between the data device reader and the gamingdevice processor unless the data device reader is first authenticated.

In a particular embodiment, a security module processor connected asdescribed just above allows communications to pass through unimpededbetween the data device reader and the gaming device processor afterauthentication of the data device reader. The security module processormay be configured to perform periodic authentication of the data devicereader after the data device reader is first authenticated, and toprevent communication between the data device reader and the gamingdevice processor if the data device reader fails the periodicauthentication.

Authentication in certain embodiments may occur as follows. The datadevice reader may first be authenticated when said security moduleprocessor generates a first random number, enciphers the first randomnumber using a common key to generate a first enciphered random number,sends the first enciphered random number to the data device reader overthe data device reader interface, receives a second enciphered randomnumber from the data device reader over the data device readerinterface, deciphers the second enciphered random number using thecommon key to generate a second random number, generates a session keyfrom the first random number and the second random number, receives athird enciphered number from the data device reader over the data devicereader interface, deciphers the third enciphered number using thesession key to generate an authentication test value, and verifies thatthe authentication test value matches the second random number.

The electronic gaming machine may authenticate the portable data deviceprior to allowing monetary transfers with the electronic purse of theportable data device. In particular, the electronic gaming machine mayauthenticate the portable data device by carrying out an authenticationprocess with the smart card portion of the portable data device, theauthentication process being completed when a processor of said gamingmachine generates a first random number, enciphers said first randomnumber using a common key to generate a first enciphered random number,sends the first enciphered random number to the smart card portion ofthe portable data device over the smart card communication interface,receives a second enciphered random number from the smart card portionof the portable data device over the smart card communication interface,deciphers the second enciphered random number using the common key togenerate a second random number, generates a session key from the firstrandom number and the second random number, receives a third encipherednumber from the smart card portion of the portable data device over thesmart card communication interface, deciphers the third encipherednumber using the session key to generate an authentication test value,and verifies that the authentication test value matches the secondrandom number.

While preferred embodiments of the invention have been described herein,many variations are possible which remain within the concept and scopeof the invention. Such variations would become clear to one of ordinaryskill in the art after inspection of the specification and the drawings.The invention therefore is not to be restricted except within the spiritand scope of any appended claims.

1-34. (canceled)
 35. A data device reader for reading portable datadevices having a smart card portion and a readable static media portion,the smart card portion comprising an electronic purse, the data devicereader comprising: a smart card interface for communicating with thesmart card portion of a portable data device; a magnetic stripe readinghead for reading the readable static media portion of the portable datadevice; a processor configured to perform money transfers between anaccount indicated by the readable static media portion of the portabledata device and the electronic purse of the portable data device; acommunication link to a financial institution computer system, saidprocessor programmed to communicate with the financial institutioncomputer system in order to conduct credit or debit transactions; and acommunication link to a point-of-sale computer system having an accountassociated with the electronic purse of the portable data device. 36.The data device reader of claim 35, wherein the portable data device isgenerally flat and rectangular in shape, and wherein the data devicereader further comprises a housing with a slot for receiving theportable data device.
 37. The data device reader of claim 35, furthercomprising means for receiving user input specifying an amount of amoney transfer to be conducted by said data device reader with respectto the portable data device.
 38. The data device reader of claim 35,wherein said processor is programmed to communicate with both thefinancial institution computer system and the point-of-sale computersystem during a single transaction in which a money transfer isperformed between the account indicated by the readable static mediaportion of the portable data device and the electronic purse of theportable data device.
 39. The data device reader of claim 38, whereinsaid processor is programmed to receive approval from both the financialinstitution computer system and the point-of-sale computer system beforeallowing a particular transaction to be completed.
 40. An electronicdevice, comprising: a data device reader adapted to receive portabledata devices having a smart card portion and a readable static mediaportion, said smart card portion comprising an electronic purse; acommunication link to a financial institution transaction processor; aprocessor configured to perform money transfers between a customeraccount managed by said financial institution transaction processor andthe electronic purse of a portable data device presented to said datadevice reader; a smart card interface for communicating with the smartcard portion of the portable data device; a magnetic stripe reading headfor reading the readable static media portion of the portable datadevice; and a communication link to a point-of-sale accounting systemhaving an account associated with the electronic purse of the smart cardportion of the portable data device.
 41. The electronic device of claim40, wherein said portable data device comprises a card, wherein saidsmart card portion of the portable data device comprises a smart cardprocessor, wherein said electronic purse comprises a non-volatile memoryaccessible to said smart card processor, and wherein said readablestatic media portion comprises a magnetic stripe affixed to said card.42. The electronic device of claim 40, wherein said portable data deviceis adapted to be received in electronic gaming machines, each of saidelectronic gaming machines comprising a smart card communicationinterface for communicating with the smart card portion of the portabledata device and transferring monetary amounts between the electronicgaming machine and the electronic purse of the portable data device. 43.The electronic device of claim 42, wherein said portable data device isadapted to be received in banking card reading devices, each of saidbanking card reading devices comprising a magnetic stripe reading headfor reading the readable static media portion of the portable datadevice.
 44. The electronic device of claim 43, wherein said banking cardreading devices perform a debit transaction with respect to a customerfinancial institution account upon reading and processing data in thereadable static media portion of the portable data device.
 45. Theelectronic device of claim 43, wherein said banking card reading devicesperform a credit transaction with respect to a customer financialinstitution account upon reading and processing data in the readablestatic media portion of the portable data device.
 46. The electronicdevice of claim 40, wherein said processor is configured to communicatewith both the financial institution transaction processor and thepoint-of-sale accounting system during a single transaction in which amoney transfer is performed between the customer account and theelectronic purse of the smart card portion of the portable data device.47. The electronic device of claim 46, wherein said processor isconfigured to receive approval from both the financial institutiontransaction processor and the point-of-sale accounting system beforeallowing a particular transaction to be completed.
 48. A method,comprising the steps of: receiving, in a data device reader, a portabledata device having a smart card portion and a readable static mediaportion, said smart card portion comprising an electronic purse;communicating between a smart card interface in the data device readerand the smart card portion of the portable data device; reading thereadable static media portion of the portable data device with amagnetic stripe reading head; establishing a communication link fromsaid data device reader to a financial institution computer system;establishing a communication link from the data device reader to apoint-of-sale accounting system having an account associated with theelectronic purse of the smart card portion of the portable data devicesaid point-of-sale accounting system being part of a closed commercialelectronic transaction system; and performing a monetary transferbetween a customer account managed by said financial institutioncomputer system and the electronic purse of said portable data device.49. The method of claim 48, wherein said portable data device comprisesa card, wherein said smart card portion of the portable data devicecomprises a smart card processor, wherein said electronic pursecomprises a non-volatile memory accessible to said smart card processor,and wherein said readable static media portion comprises a magneticstripe affixed to said card.
 50. The method of claim 49, wherein saidportable data device is adapted to be received in electronic gamingmachines, each of said electronic gaming machines comprising a smartcard communication interface for communicating with the smart cardportion of the portable data device and transferring monetary amountsbetween the electronic gaming machine and the electronic purse of theportable data device.
 51. The method of claim 50, wherein said portabledata device is adapted to be received in banking card reading devices,each of said banking card reading devices comprising a magnetic stripereading head for reading the readable static media portion of theportable data device.
 52. The method of claim 51, further comprising thesteps of: reading data from the readable static media portion of theportable data device; and performing a debit transaction at said bankingcard reading device with respect to a customer financial institutionaccount identified by said data.
 53. The method of claim 51, furthercomprising the steps of: reading data from the readable static mediaportion of the portable data device; and performing a credit transactionat said banking card reading device with respect to a customer financialinstitution account identified by said data.
 54. The method of claim 48,further comprising the step of receiving approval from both thefinancial institution computer system and the point-of-sale accountingsystem before allowing the monetary transfer to the electronic purse ofsaid portable data device to be completed.
 55. A system for conductingelectronic monetary transfers to and from an electronic purse stored ona portable data device, said portable data device including a smart cardportion comprising the electronic purse and a magnetic stripe portion,the system comprising: at least one electronic point-of-sale machineadapted to receive the portable data device and communicate with thesmart card portion thereof, said electronic point-of-sale machinetransferring money to and from the electronic purse of the smart cardportion of the portable data device via electronic commands and beingpart of a closed electronic transaction computer system; and a datadevice reader adapted to receive the portable data device, said datadevice reader comprising: a smart card interface for communicating withthe smart card portion of the portable data device; a magnetic stripereading head for reading the magnetic stripe portion of the portabledata device; a communication link to a financial institution transactionprocessor; a communication link to the point-of-sale electronictransaction computer system having an account associated with theelectronic purse; and a processor configured to performing a monetarytransfer between a customer account managed by said financialinstitution transaction processor and the electronic purse of saidportable data device.
 56. The system of claim 55, wherein the electronicpurse of the portable data device stores a credit amount allowing theportable data device to be utilized in the electronic point-of-salemachine.
 57. The system of claim 56, wherein a portion of said creditamount is automatically read out by the electronic point-of-sale machineupon presentation of said portable data device to the electronicpoint-of-sale machine.
 58. The system of claim 55, wherein said datadevice reader is configured to communicate with both the financialinstitution transaction processor and the point-of-sale electronictransaction computer system during a single transaction in which a moneytransfer is performed between the customer account and the electronicpurse of said portable data device.
 59. The system of claim 58, whereinsaid data device reader is configured to receive approval from both thefinancial institution transaction processor and the point-of-saleelectronic transaction computer system before allowing a particulartransaction to be completed.